Discussion: HRM - Employee Benefits, Healthcare, and Small Businesses

This discussion post analyzes employee benefits and healthcare coverage in the context of a small business, Frank Bonanno's restaurant company. The post explores the advantages of offering health coverage in terms of employee recruitment and commitment. It examines how rising unemployment rates and increased labor costs might affect the company's healthcare strategies, including potential adjustments to health coverage plans and responses to higher labor costs. The Affordable Care Act (ACA) and its recent changes are also discussed, focusing on their impact on both employers and employees, including potential penalties for non-compliance and the need for employees to adhere to the act's rules. The analysis incorporates insights from the HRM textbook and references relevant academic sources, providing a comprehensive overview of the topic.

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3/26/2019

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Introduction
The assignment brings about the discussion on the concepts of small businesses, and
the ways they manage employees in terms of healthcare coverage. Thus, the discussion will
be done using the first post, based on a restaurant company, and the employees working.
Employer Advantages
The post answers to the question that why an organisation need to focus on the health
of their employees working in the organisation. As from the perspective of an employee or
individuals working in the organisation, benefits are essential for their commitment to the
organisation. This has defined in context to the given case of Frank Bonanno’s restaurant
company. The company runs smoothly and assures their employees best compensation, and
other benefits apart from their salaries. Specifically, it provides them healthcare benefits or
coverage that is essential for them to work consistently and show higher commitment towards
organisation (Noe et al., 2017).
For an example, the managers at the restaurant company has organised some benefits
through providing pension pays or plans to their elder employees, and those with families.
The company offers their employee three tiers health coverage schemes, and other benefits
leading employees in the state of peace of mind. This acts as major aspect of motivation and
encouragement for them to work with dedication for a long-term within organisation, and
help in the attainment of organisational goals and objectives. The employee recruitment
strategy of the company makes them ‘super-competitive’ in terms of the recruitment of
employees at the right position (Karch & Peters, 2017).
Impact of high unemployment rates
To assess the impact of raise or hike in unemployment rates, it has been analysed that
Bonanno’s restaurant company will have to make adjustment into their health coverage plans.
Due to increment in the number of people or employees working in the organisation, a plan
need to be organised through giving equal number of benefits to every employee, therefore
they will have to emphasize on their expenditure or strategies.
Affordable care Act (ACA) has recently made certain changes in terms of the tax code
which is intended to increase the health insurance coverage for the people. Moreover, it has

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also reduced the costs of providing health care facilities to the employees working in the
organisation.
Response to high labour costs
Employers will respond to an increase in the labour costs, by reducing or cutting
down the number of hours, to be used in their work. This will help the company to manage
the increased costs and will help them work on an appropriate salary structure.
Effect of the changes in the act
Changes to the act affect both employers, and employees, as if the employers do not
comply with the rules or guidelines of the act to provide the health coverage, they may face
penalties. On the other hand, employees also need to comply with the established rules of the
act and abide by them as their employers within organisation.
Conclusion
Hence, the post has been described well about the reason why Frank Bonanno’s
strategy to become competitive in terms of employee’s commitment amongst others in the
region.

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References
Karch, G. E. & Peters, M. (2017). The Impact of Employee Uniforms on Job Satisfaction in
the Hospitality Industry. Journal of Hotel and Business Management, 6(1), 1-6.
Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York: McGraw-Hill Education.